The most liquid securities traded in the capital market are
A) corporate bonds.
B) municipal bonds.
C) U.S. Treasury bonds.
D) mortgage-backed securities.
C
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
Refer to Figure 5-4. What is the deadweight loss from producing at the market equilibrium?
A) area D B) area E C) area C D) area F
A firm’s average fixed cost
A. does not vary with output. B. decreases as output rises. C. is equal to average cost when average cost is minimized D. causes marginal cost to rise as output rises.
A natural gas monopoly currently sells 100 cubic feet of gas at $1.10 per cubic foot. To sell one more cubic foot, the natural gas company must lower the price of gas to $1.09 . Which of the following best describes the marginal revenue of the 101st cubic foot of natural gas? a. The marginal revenue equals the price, or $1.09
b. The marginal revenue equals the change in price, or $ 0.01. c. The marginal revenue is less than $1.09. d. The marginal revenue is greater than $1.09.